LSEG Launches Private Funds Blockchain Platform DMI
London Stock Exchange Group (LSEG) has launched a new private funds blockchain platform, Digital Markets Infrastructure (DMI). Built on Microsoft Azure, the platform covers the full lifecycle of private funds, from issuance and tokenization to trading, settlement and post-trade services. The first live transaction for MCM Fund 1 was completed with MembersCap as general partner and Archax as regulated nominee, marking the first fundraise executed by a regulated exchange on a blockchain.
This private funds blockchain platform aims to improve liquidity in traditionally illiquid markets by representing fund ownership as tokens. It also emphasizes interoperability with existing financial systems and distributed ledger technologies. Industry observers say tokenization on a regulated exchange can streamline manual processes, accelerate settlement and enhance auditability.
LSEG plans to expand DMI beyond private funds to other asset classes. Future secondary market activity will depend on custody solutions, trading rules and regulatory clarity. For crypto traders, this development underscores the growing institutional demand for tokenized assets and could drive increased usage of public blockchains such as Ethereum.
Bullish
The launch of LSEG’s private funds blockchain platform DMI marks a significant institutional step into tokenized assets. In the short term, the first live transaction and regulatory backing from Archax may boost market sentiment and highlight tokenization use cases. Over the long term, DMI’s interoperability with existing financial systems, expansion to other asset classes, and reliance on public blockchains like Ethereum could drive sustained demand for on-chain tokenized securities. This infrastructure move supports a bullish outlook on Ethereum and broader tokenization protocols as institutional adoption grows.